Can Anyone Really Explain the New RESPA Guidelines?

I just came away from the second workshop in as many months about the new RESPA guidelines for the "new and improved" Good Faith Estimate and HUD-1. I understand it was devised to make the costs involved in the home buying process clearer, more understandable and more transparent. Puh...leeze!

I tend to lean left when it comes to Government assistance with social programs but this thing is absolutely ridiculous. It is anything but clear, transparent and understandable. Worse, it will, more likely than not, create so much confusion in the marketplace that buyers will be even more frustrated about the costs of buying a home.

I wrote about this at some length on my MD Suburban Homes Blog.Yet, I cannot help but wonder where the hue and cry from the real estate profession was to allow some input into what are two of the most important aspects of the home buying transaction - the mortgage and settlement.

Don't get me wrong. I'm big on consumer choice. I'm big on potential home buyers feeling comfortable with their Realtor, mortgage company and settlement company. I also know that real estate professionals go through these transactions many, many times while the typical home buyer may go through it once every seven years (or longer).

What really irritates me is that as restrictive as the Good Faith Estimate might be, the HUD-1 has morphed into something that is barely understandable without a calculator and math degree. The old saying will change from "Buyer Beware" to "Buyer be Scared". Confusion does that to people.

My only hope is that someone over at HUD wakes up and smells the coffee. Of course, they're not the ones out here.